You are a benefits consultant reviewing the disability coverages offered by one
ID: 2655094 • Letter: Y
Question
You are a benefits consultant reviewing the disability coverages offered by one of your client firms.
The disability plan of the firm offers provides short-term benefits equal to 100% of salary for 3 full years and long-term lifetime benefits equal to 75% of salary. The definition of disability for both short- and long-term benefits is termed as "total and continuous inability to perform any and every aspect of the regular occupation."The plan is not integrated with workers' compensation or Social Security benefits at all.Explain to the firm why they have such a high rate of disability claims.(be very specific)
Explanation / Answer
because the workers are paying about 75% of thier annual salary as disability compensation. then what is the need to work and why should take risk. if money comes without work, people prefer it only. that is one reason to record more disabilities rate.
the other one is the employment conditions, really the employees may be suffering of the work and becoming disable.
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